Abuse of Market Dominance in Ethiopia: Legal Frameworks and Enforcement Challenges

Abstract

The study employs a mixed-methods approach, combining doctrinal legal analysis of Ethiopian laws, proclamations, and international comparisons with empirical non-doctrinal methods, including semi-structured interviews with key stakeholders such as officials from the Ministry of Trade and Regional Integration, judges, businesspersons, and consumers. Data was collected from primary sources (interviews, legal documents) and secondary sources (scholarly articles, reports), analyzed qualitatively. The research identifies prevalent AMD practices in sectors like telecommunications (e.g., Ethio-Telecom's exclusive agreements), manufacturing (e.g., Keste Damena's improper franchise fees), and mobile services (e.g., Transsion Holdings' restrictions on spare parts). Legal gaps include unregulated intersections with intellectual property rights, inadequate penalties, and absence of provisions for abuse without absolute dominance. Enforcement challenges encompass limited institutional capacity, conflicts of interest within the Ministry, and insufficient resources. Ethiopia's competition framework is foundational but undermined by weak enforcement and practical gaps, leading to market distortions and reduced consumer choice. Recommendations include revising laws to address relative dominance and intellectual property abuses, enhancing the Anti-Competitive and Law Violation Prevention Desk's independence and capacity through training and resources, raising public awareness on competition rights, and fostering inter-institutional collaboration for effective oversight.